SAP - FI Accounts Receivable - Part 2
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SAP - FI Accounts Receivable - Part 2

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SAP FI AR

SAP FI AR

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SAP - FI Accounts Receivable - Part 2 SAP - FI Accounts Receivable - Part 2 Presentation Transcript

  • SAP FIAccounts Receivable
  • Table of Contents AR Overview Sub ProcessesMaster DataCredit ManagementInvoice ProcessingCash Receipting / PaymentsAccount Analysis / ReconciliationPeriodic ProcessingReporting
  • SAP Modules - OverviewSales &DistributionSDMMPPQMPMHRFICOAMPSOCISMaterialsMgmt.ProductPlanningQualityMgmt.Plant Maint.HumanResourcesFinancialAccountingControllingFixed AssetMgmt.ProjectSystemOffice &Comm.IndustrySolutionsSAP R/3
  • FI – Financial Accounting ModulesFI - Financial Accounting ModulesFIAPAccounts PayableCMCash ManagementSLSpecial LedgerLCLegalConsolidationTMTravelManagement AM&IMAsset and InvestmentManagementGLGeneral LedgerARAccounts ReceivableAR
  • Accounts Receivable ProcessOverviewInvoiceProcessingMasterData /CreditManagementAccountsReceivableCashReceipting /PaymentsAccountAnalysis &ReconciliationReportingFinancialAccounting Process decompositions are the startingpoint for our process documentation. They summarise what is involved in athe AR process at a high levelPeriodicProcessing
  • Master Data Maintenance• Creation 3 Levels• General Data (name, address)• Company Data (reconciliation acct, payment term)• Sales Data (SO currency, incoterms)• Change• Block• Delete Account Groups Intercompany One-time customers
  • Master Data – Activity FlowRequest toCreateCustomerAccountChangeCustomerAccountBlock CustomerAccountMark CustomerAccount forDeletetionMantain CustomerAccountMantainedCustomerAccount
  • Master Data: StructureCustomerMaster General data• Address• Control data• Marketing• Export data• Contact persons Company Code data• Account Management• Payment Transactions• Correspondence• Insurance Sales Area data• Sales• Shipping• Billing document• Partner functionsClient230CompanyCode9100A LtdSales Organization9100
  • Components of a Customer MasterCustomer Master Data contains: General data• Does not depend on the company code or the sales anddistribution organisation• Applies to one business partner for all company codes, andin all sales areas, and includes:• Company name• Address• Telephone number• Data that is unique to a customer, and shared by alldepartments
  • Components of a Customer Master 2 Company Code data• Company code data only applies to one company code(Legal business). This data is only relevant to FinancialAccounting.• If you edit a master record, you must specify thecustomer number and company code to access thescreens containing company code data.• You can only invoice a Payer (partner function) if youhave entered data in the Financial Accounting view.
  • Components of a Customer Master 3 Sales and Distribution data• The data for one customer can differ for each sales area. Thesales area is a combination of Sales Organization,Distribution Channel and Division. Some data is onlyrelevant to Sales and Distribution, and includes:• Pricing data• Delivery priority• Shipping conditions• If you edit a customer master record, you must enter thecustomer number and the sales area in order to accessscreens containing sales and distribution data.• You can only process sales and distribution transactions, eg:a sales order, after entering the sales and distribution data fora customer.
  • Sales TerritorySales TerritoryMaster Data: Partner FunctionsBill-to partyBill-to party**Payer*Payer*Ship-to party*Ship-to party*Sold-to party*Sold-to party*Contact personsSales Agent* mandatory functions* mandatory functions* mandatory functions* mandatory functionsPartner functionsPartner functions
  • Master Data: Account GroupsSold-toCustomerShip-to CustomerOne-TimeCustomer00010002CPDGroupsImplemented00030004ZAF1Sold toShip toPayerOne-timeBill toPlant / AffiliateZSWP Swap Partner
  • Number Ranges for Account GroupsAccountGroupPartnerFunction0001000200030004CPDZAF1ZOTRZ002Z007ZSWPSold-toShip-toBill-toPayerOne-timePlant / AffiliateSales TerritoryInternational SHSales AgentSwap PartnerNumberRange0010000000 – 0019999990010000000 – 0019999990010000000 – 0019999990010000000 – 0019999990020000000 – 0029999990000000001 – 0000019999A – ZZZZZZZZZZ0010000000 – 001999999A – ZZZZZZZZZZ1000000000-1999999999NumberAssignmentInternalInternalInternalInternalInternalExternalExternalInternalExternalExternal Internal Assignment: SAP assigns a unique number eachtime a master record is created External assignment:User creating the master record canenter their own unique number
  • Master Data: Intercompany
  • Master Data: One-time Customer We use One-timeCustomer’s MasterRecord to avoid largenumber of unnecessarymaster data Every time we enter abusiness transaction, thesystems stores thespecific Master Datainformation separately inthe document
  • Managing Customer Master Data Blocking / Unblocking• For processing at various levels:Sales order processingDelivery processingBilling processing• Credit control reasons• Requires validationNew customer Credit ControlBlock / UnblockBlock CustomerMaster record
  • Managing Customer Master Data (2) Flag for deletion• For processing at various levels:Sales order processingDelivery processing• Duplication of data• Redundancy of useDuplication ofcustomer masterRedundantrecordsFlag for deletionDelete CustomerMaster record
  • Deleting a Customer Master RecordDelete all areasor data for a specific CCPrevents SAP from deletingthe general data or companycode and general data
  • Deleting a Customer Master Record Pre-requisites for archiving a record:• The account cannot contain any transaction figures• Transaction figures from prior years that have not been archived willprevent the system from deleting the account master record• The account must be marked for deletion in its master recordNo longer used /created in duplicationSAPDatabaseSAPDatabaseExtracted fromdatabaseTransferred toarchive systemFlag PlacedIn a fileBlockCustomermasterrecord
  • Credit Management - Overview Credit Management can minimize the credit risk bydefining specific credit limits for your customers This is particularly useful if your customers are infinancially unstable industries or companies, or if youconduct business with countries that are politicallyunstable You can specify your own automatic credit checks basedon a variety of criteria You can also specify at which critical points in the salesand distribution cycle (for example, order entry, delivery,goods issue) the system carries out these checks
  • Credit Management Credit Control Area• A hierarchical unit for managing customer credit limits• A credit control area can include one or more company codes• If a customer is created in several company codes that areassigned to different credit control areas, a separate credit limit ismanaged for the customer in each of the different credit controlareas9400–LatinAmerica9200-America9100-AsiaPacific9300–Middle East
  • Global Credit ControlCHQOverall Credit Limit: $1,000,000Individual limit: $450,0009400 94029401 9100 9300 9301Company Codes92009100–Asia PacificLimit: $150,0009400–Latin AmericaLimit: $250,0009300–Middle EastLimit: $450,0009200–AmericaLimit: $150,000Credit Control Areas
  • Credit Management: Data Views Central Data• Contains information for the current credit limit assigned andmaximum permitted credit limits• Total amount• Individual amount Status• Credit limit data - Contains information relating to credit limits andpercentage used:ReceivablesSpecial liabilitiesSales value• Internal data - Contains information relating to the customer riskcategory and blocking a customer for all transactions excludingbilling
  • Credit Management - Exposure Credit Exposure• The customers credit exposure may not exceed their credit limit• The credit exposure is the total combined value of the followingdocuments:• Open orders• Open deliveries• Open billing documents• Open items (accounts receivable) Executing automatic credit check in sales orderprocessing• Non-critical fieldsNot re-executed for changes made to these fields e.g. Texts• Critical fields:• Re-executed for changes made to critical fields e.g. Payment terms,Price, quantity
  • Credit and Risk Management -ReportsProgram FunctionRFDKLI10 Customers with missing credit dataThis report checks the data for the credit limit for completeness, and produces the corresponding error lists. These can be used to re-maintain the corresponding definitions manually, or per Batch Input.RFDKLI20 Reorganization of credit limit for customersThis report enables you to reorganize the credit limit information in the control areas.RFDKLI30 Short overview credit limitThe report lists the central and control area-related data per customer.RFDKLI40 Overview credit limitThe report provides you with an extensive overview of the customer’s credit situation.RFDKLI41 Credit master sheetThe credit master sheet enables you to display and print out the customer master data for a single account, which is needed for thearea of credit management.RFDKLI42 Early warning listThe early warning list enables you to display and print out customers in credit management, who are viewed as critical customers in thearea of credit checks in SD.RFDKLI43 Master data listThe master data list enables you to display and print out customers’ credit cards. In particular, you can display information notcontained in the standard system, for example, user-defined fields or external data, which you have created with specific addRFDKLI50 Mass change credit limit dataThis report allows quick mass change for master data in credit management.RFDKLIAB Change display, credit managementWith this report, you can display changes for credit management master data for all accounts.RVKRED06 Checking blocked credit documentsThe report checks all blocked documents from credit view. The report is started in the background, and should run after the incomingpayments programs.RVKRED77 Reorganization credit data SDThe report enables you to reorganize open credit, delivery and billing document values. It is used, for example, when updating errorsoccur.RVKRED08 Checking sales documents which reach the credit horizonThe report checks all sales documents, which reach the dynamic credit check horizon, as new. The report runs periodically, and shouldrun at the start of a period. The period for the ‘date of the next credit check’ is proposed from the current date, withRVKRED09 Checking the credit documents from credit viewReleased documents are only checked if the validity period for the release has run out (number days).RVKRED88 Simulation reorganization credit data SD
  • Accounts Receivable ProcessOverviewInvoiceProcessingMasterData /CreditManagementAccountsReceivableCashReceipting /PaymentsAccountAnalysis &ReconciliationReportingFinancialAccounting Process decompositions are the startingpoint for our process documentation. They summarise what is involved in athe AR process at a high levelPeriodicProcessing
  • Invoice ProcessingSAP R/3 supports the following transactions: Sundry• Invoice• Credit/Debit Notes• Down Payment• Bill of Exchange Receivable Parked Documents Foreign Currency SD Billing Inter-company postings
  • Sundry Invoice ProcessingCreateA/R accountpostingCreateA/R PostingFast EntryHold anincompletedocumentCreateA/R posting withreferenceCompletePosting??NoPosted EntryPostManual Journalwith ClearingCreateA/R invoiceusing a SampleDocumentCreate/Displaya ParkedDocumentPost/Releasea ParkedDocumentCreate anAccountAssignmentModelCreateIntercompany A/RPostingCreateRecurringDocumentYes
  • Posting a documentDocumentSimulation After entering the document it ispossible:• To post it immediately• To “park” the document• To hold the document
  • Payment Terms Terms of payment are arrangements made with a Customer governingfinancial settlement with respect to goods supplied and servicesperformed, e.g. cash on delivery, payment within 30 days. Within payment terms, cash discounts and periods allowed for paymentare defined.
  • Document Creation with ReferenceDocument13 000 00031________________________Sample Document92 000 00044________________________orReference _______________Doc. Number ?Control Sequence____________• Generate Reverse Posting• Enter G/L Account Items• Do Not Propose Amounts• Display Line ItemsDocument13 000 00032________________________
  • Special GL Transactions: Definition Special GL Transactions allow the user to post the document to an alternative GLaccount instead of “normal” Customer’s reconciliation account, They are defined in Customizing for Customers and Customers reconciliation accounts.Customers’reconciliationaccountsAccounts definedfor Special GLTransactionsSpecial GLIndicator
  • Posting a Down PaymentBankAccountCustomer’sAccount10GL DownPayments101 1 The Customer pays A Ltd a down-payment: $10.000,- The down payment is booked on Customer’s account with Special GLindicator The amount of $10.000,- is shown on Customer’s account, but on differentGL Account, instead of Customer’s reconciliation account10
  • Display of Special GL Transactions To display the transaction posted with Special GL Indicator, markthe relevant field on the “Line items display” screen. “Dynamic selections” may be used to search for different GLindicators.
  •  Updating the document flow Creating documents in Financial Accounting Updating the billing status Updating the Sales Information System Updating the credit account Forwarding data to Profitability Analysis Printed document / EDI to customerInvoiceSales OrderProcessingSales OrderProcessingInventorySourcingInventorySourcingBillingprocessingBillingprocessingCustomerPaymentCustomerPaymentInvoiceDelivery &ShippingDelivery &ShippingEffect of Creating a BillingDocument
  • Billing Document
  • Credit and Debit Memo RequestsDebit noteDebit memorequest No billing block Create debit memoBillingdoc.Credit noteCredit memorequestBillingblock  Create credit memoafter billing block hasbeen removedBillingdoc.OK
  • Inter-company ProcessingA2 Ltd.A Ltd.A1 LtdF110Inter-coy BillingInvoice (IV(ARARAPInter-coy BillingInvoice (IV(F110APSD Document1000001144HDR Ref:1000001144SD Document2000002244HDR Ref:2000002244FI Document3000015244HDR Ref:2000002244FI Document2000006344HDR Ref:1000001144AR header reference=AP header referenceAR header reference=AP header reference
  • Parked DocumentsComplete and post laterComplete and post laterDisplay/change/evaluateparked documentsDisplay/change/evaluateparked documentsEnter anincompletedocumentNo postings take placePark documentLine itemsDocumentsPost parked documentsPost parked documentsMM Customer G/L accountPostings take placePostings take place
  • Parked doc. vs. Held doc. Parked document:• Assigned number (according to documenttype)• Document is available for editing formany users (depending on theauthorizations in the system) Held document:• Internal document number (defined by theuser)• Document is available for editing only forthe user who created it.
  • Processing of Parked Documents The parked document may be:• Posted,• Edited,• Saved as completed,• Deleted.Choose companycode
  • Posting in Foreign CurrencyLocal currency - Functional currency of the company codeDocument currency - Currency of the documentGroup currency - Alternative currency for group reporting For every Company Code there’s defined a company code currency,ie, every company code has a “local” currency. Every document, posted in different currency than company codecurrency, is processed as a foreign currency document. Accounting documents can be posted in a foreign currency The foreign currency is converted to local currency and both are storedin the document along with the exchange rate
  • Posting in Foreign Currency1.3.2.1. Exchange rate can be entered manually,2. Or derived from “Exchange Rates Table”3. System automatically translates the foreign currencyinto CC currency.
  • Accounts Receivable ProcessOverviewInvoiceProcessingMasterData /CreditManagementAccountsReceivableCashReceipting /PaymentsAccountAnalysis &ReconciliationReportingFinancialAccounting Process decompositions are the startingpoint for our process documentation. They summarise what is involved in athe AR process at a high levelPeriodicProcessing
  • Cash Receipting / PaymentsBusiness Transactions included in Process: Customer Payments• Manual Checks• Clear Customer Accounts• Post processing transactions Inter-company Payments• Idoc’s
  • Manual Check Deposit - ActivityFlowCheques withsupportingdocumentsGroupchequesby lotsEntercheques list.(by customer)Referenceinvoices paid.PrintchequeslistPostCheck whetherpostings are correct ?
  • Check Deposit - Account AssignmentCheck Deposit ListCustomer AccountIncoming checks AccountO.b.) 200,- 200,- (11) 200,-200,- (22) 200,-Bank AccountPostings
  • Check Deposit - Initial SpecificationHouse Bank IDCustomerMatchodePostprocessingmethod:2 - batch input4 - direct posting(on-line)
  • Check Deposit - PostingPostingPostingBatchInputDirectPostingProcessProcessLogLogProcessProcessLogLogProcessingtype 2Processingtype 4
  • Accounts Receivable ProcessOverviewInvoiceProcessingMasterData /CreditManagementAccountsReceivableCashReceipting /PaymentsAccountAnalysis &ReconciliationReportingFinancialAccounting Process decompositions are the startingpoint for our process documentation. They summarise what is involved in athe AR process at a high levelPeriodicProcessing
  • Account Analysis / ReconciliationBusiness Transactions included in Process:Display Customer’s account balance and line itemsClear outstanding items on Customer’sPost Customer’s documents with clearingPerform automatically clearing proceduresReverse documents
  • Display Account Balance Account balance displays totals of transactions, per month as well ascumulative values The report may be printed or saved as a local file
  • Display Account Line items “Line items” report displays particular transactions, It it possible to change the documents directly from this screen, The report may be printed or saved as a local file
  • Open Item Clearing1 23
  • 1 Customer invoice 46,0002 Customer invoice 20,0003 Customer payment 26,000Customer ABC Inc.1 46,000 46,000 33Customer ABC Inc.33 20,000 20,000 2Bank33 26,000Clearing: Customer and Vendor
  • Reversal of Clearing Reversal of documents that were cleared before is not possible, First the clearing operation must be reset.Display cleared itemsReversal of clearing
  • Reverse a Customer documentDocument entered incorrectlyDocument corrected by Reversal: Reverse with a standardreversal posting Reverse with a negativepostingDocument re-entered correctlyBalance sheetAssetsLiabilitiesShared equity
  • Mass Reversal of Documents Many documents may be reversed at the same time, Process may be scheduled to be performed in the background.Mass ReversalProcedureMass ReversalProcedure
  • Accounts Receivable ProcessOverviewInvoiceProcessingMasterData /CreditManagementAccountsReceivableCashReceipting /PaymentsAccountAnalysis &ReconciliationReportingFinancialAccounting Process decompositions are the startingpoint for our process documentation. They summarise what is involved in athe AR process at a high levelPeriodicProcessing
  • Period End ProcessingBusiness Transactions included in Process:Dunning
  • Dunning - Process OverviewCustomer OpenItemsCustomer MasterRecordDunningProgramPrint DunningNoticesUpdateUpdate
  • Dunning Proposal The dunning run creates a dunning proposal which can be edited,deleted, and recreated as often as necessary. If desired, the dunning run can directly and automatically be followed bythe printing of dunning notices. The editing of the dunning proposalwould therefore be skipped. As a general rule, receivables are due at the net due date.Schedule DunningRunCheck / Edit DunningProposal
  • Customer Master0001Dunning Blocks You can prevent customer invoice from dunning. There aretwo ways to to it:• You can enter a dunning block in the item (e.g. customer invoice);then the system puts this item on the blocked items list and thisitems is not included in the dunning notice.• You can enter a dunning block in the customer master. In suchcase the system does issue a dunning notice at all for this account.DunningBlockLine ItemsOR
  • Dunning Levels A Ltd dunning procedure has three dunning levels. The higher the dunning level the more insistent is thedunning text. Each item to be dunned gets a dunning level according toits days in arrears. From one dunning run to another the dunning level can onlybe raised by one, i.e. no dunning level can be skipped.Dunning Levels
  • Print Dunning Notices The print program for the dunning procedure:• generates dunning notices,• enters the dun date and the dunning level into the dunned items(e.g. invoices) and customer master records. If one-time customers are dunned, the dunning data is onlyupdated in the items. Dunning notices are printed in a sequence defined by sortcriteria.Scheduleprintout1Check Spool Request(s)2 Print Notices3
  • Accounts Receivable ProcessOverviewInvoiceProcessingMasterData /CreditManagementAccountsReceivableCashReceipting /PaymentsAccountAnalysis &ReconciliationReportingFinancialAccounting Process decompositions are the startingpoint for our process documentation. They summarise what is involved in athe AR process at a high levelPeriodicProcessing
  • Reporting SAP system offers number of reports that help analyzingentered business transactions:• Open Items List• Cleared Items List• Account List• Account Balance List Customised Reports• Aged Open Items List Report can be:• Printed out directly to the printer,• Saved as a local file (txt format, Excel file etc.)• Sent by e-mail
  • Accessing Reports2SAP MenuTransaction SA38 A user can run the required report in two ways:• Directly from “The Report Tree”,• Using transaction SA38, provided that he/she knows the report’sname1
  • Accounts Receivable EvaluationsDuedateanalysisCurrencyanalysisOverdueitemsRecon. Acct.PlanninggroupCountryBusinessareaCompanycodeEvaluation typesVersions- Business Area- Company code- Corporate groupEvaluation ViewsVariable